Taxing Matters: August 2019

Tax Changes August 2019 is a summary of the latest tax and business changes, updates and news. You will be aware that IRD are now automatically calculating income tax returns, and by now most people will have been informed that they have been assessed and either have tax to pay or are due a refund.

2019-08-19T14:24:37+12:00August 19th, 2019|Tax|

New Insulation Standards: Is The Cost Tax Deductible?

On 1st July 2019 the government introduced minimum insulation, heating and ventilation standards under the Residential Tenancies Act 1986. These standards include the requirement that ceiling and underfloor insulation must be installed in rental homes where it is reasonably practicable. As we explained in our previous article “Rental Properties: Which Expenses Can You Claim?” a

2019-08-14T11:13:27+12:00August 14th, 2019|Property Accounting, Tax|

Voluntary IRD Disclosures

If you have noticed an error in your tax returns, for example omitted some income or incorrectly claimed some expenses, you can make a voluntary disclosure to the IRD. Voluntary disclosure is where a tax payer becomes aware of an error in their taxes and tells the IRD before they find out in some other

2019-08-07T11:36:52+12:00August 7th, 2019|Tax|

Which Client Entertainment Expenses Are Tax Deductible?

It’s common for businesses to spend money on entertaining customers as a way of showing appreciation for their custom and encouraging loyalty. However, deciphering whether client entertainment expenses are non-deductible, 50% tax deductible or 100% tax deductible in line with the IRD’s rules can be a real challenge. From the IRD’s perspective, the types of

2019-08-01T10:52:16+12:00August 1st, 2019|Tax|

GST: The Second-hand Goods Credit

A GST-registered person who purchases “second-hand goods” in the course of a taxable activity may be able to deduct a proportion of the purchase price as input tax. A deduction may only be made if: The goods are purchased for making taxable supplies; The goods are in New Zealand; The supply is a non-taxable supply,

2019-07-02T16:08:25+12:00July 2nd, 2019|Tax|

Taxing Matters: June/July 2019

A summary of the latest tax and business news and updates. From 1st January 2020, the IRD will require most people who buy and sell properties to supply their IRD numbers on land transfer documentation. Currently, IRD numbers are not required for main home property transfers because in most cases there are no tax obligations

2019-07-03T08:59:00+12:00July 2nd, 2019|Tax|

Non-Deductible Expenses

While many expenses incurred in the course of doing business can be claimed to reduce your income tax, certain expenses are not deductible for tax purposes. These include: Late filing and late payment penalties imposed by the IRD. Costs related to breaking the law, such as speeding tickets or parking fines. Insurance premiums relating to

2019-07-02T10:05:40+12:00July 2nd, 2019|Tax|

Is Sponsorship Tax Deductible?

If your business provides sponsorship to an individual or organisation, it may be tax deductible. Sponsorship is different to ‘advertising’ or ‘donations’. It is defined as when the taxpayer incurring the expenditure expects that his/her business will be promoted in some way, whilst the sponsorship recipient will also be benefited in some way. The IRD’s

2019-06-24T10:08:35+12:00June 24th, 2019|Tax|

Your Final Pay Following Redundancy

It is the employee’s responsibility to check that their final pay following redundancy is taxed correctly. Here we take a look at what should be included, and taken out, of your final pay. If you are in the difficult situation of facing redundancy, there is a fair process your employer must follow which includes exploring

2019-06-18T14:33:34+12:00June 18th, 2019|Tax|

Taxing Matters: May 2019

A summary of the latest tax and business changes, updates and news. The new ACC levy rates have been set. For both of the 2019-2020 and 2020-2021 tax years, the earners’ levy stays at $1.39 (including GST) per $100 liable earnings. For self-employed workers, the minimum liable earnings increases to $36,816 (up from $32,760). As

2019-05-30T14:02:00+12:00May 30th, 2019|Tax|